Sysorex (NASDAQ: SYRX), a developer of high performance analytics software and solutions, today reported financial results for the third quarter ended September 30, 2016.

Sysorex (NASDAQ: SYRX), a developer of high performance analytics software and solutions, today reported financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Financial Highlights:

2016 Q3 revenue of $11.2 million

2016 Q3 gross margin of 28%

2016 Q3 GAAP net loss of $0.18 per share

2016 Q3 GAAP net loss of $4.7 million

2016 Q3 Proforma Non-GAAP net loss 1 of $0.13 per share

2016 Q3 Non-GAAP Adjusted EBITDA 1 loss of $2.4 million

"Our Storage & Computing segment continued to see softening in the third quarter due to the challenges facing the VAR industry, especially with private sector customers. I will discuss on our earnings call today the two strategies we are implementing to address these challenges. First of course is our move to increase our value proposition to our customers by owning our proprietary technologies such as AirPatrol and LightMiner. Our second approach is to counter the VAR trends in the private sector by growing our VAR business in the public sector. I have stated this many times in the past and we started on this effort as evidenced by the recent government contract wins. We believe the announcement today of the planned asset acquisition of Integrio will allow us to address this challenge aggressively. As represented by Integrio, it has generated more than $40 million per year in revenue over the past two years. We believe this fundamentally strengthens our VAR business segment with positive, long-term benefits," said Mr. Nadir Ali, CEO of Sysorex.

"Integrio's relationships with the Bureau of Prisons, FBI and many other government agencies yield further opportunities for our AirPatrol and LightMiner products. We are also encouraged about our Mobile and IoT segment as we begin to monetize the implementation of our Air Patrol and LightMiner solutions pursuant to the managed services contract with a large mall operator. This implementation is what we envision to be the first of numerous significant business developments that capitalize on our innovative technologies and big data solutions. Our offerings continue to receive substantial interest from numerous industry leading clients across Retail, Security and the Government sectors and we expect to announce a number of customer developments in the coming quarters," Mr. Ali concluded.

Sysorex (SYRX) shares are higher after the announcement that Lilien Sysorex was selected as a National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC) Prime Contract Holder.